Gov. Signs Bill Allowing Captive Insurance Companies In Ohio
|Targeted News Service|
"Thanks to the work and leadership of Chairman Hackett and Rep. Stinziano in conjunction with many different stakeholder partners, this legislation will further strengthen
The legislation allows the formation of captives to meet the commercial insurance needs of businesses such as for commercial auto liability, workers' compensation and medical malpractice. The legislation does not permit captives to be used to insure personal lines of insurance.
HB 117 also sets forth certain capital and financial reserve, organizational, general application and fee requirements and gives the Department authority to monitor the relationship/transaction between a parent business and its
A captive is different from a commercial insurance company because it only serves its parent business. Therefore, captives are regulated differently than traditional insurance companies that serve the public. Like traditional insurance companies, captives are regulated by the state in which its headquarters are located.
Captives have become a popular risk-management tool for businesses seeking greater control over managing their commercial insurance needs.
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